Walmart to Sell 80 Percent Stake in Brazil Business

Associated Press |


NEW YORK (AP) — Walmart Inc. (WMT:NYE | $83.61 |  |  Trade ) is selling an 80 percent stake in its Brazilian operations to a global private equity firm as it reduces its presence in countries where it's struggling.

Under the deal with Advent International, Walmart expects to keep a 20 percent stake. The companies did not specify a value on the deal.

Walmart expects to record a non-cash, net loss of about $4.5 billion in the second quarter due to the transaction. It says it expects to receive up to $250 million over time, based on the unit's performance, and that Advent will contribute additional capital over three years.

Walmart is focusing on areas with bigger growth opportunities like India and China. Last month, it announced a $16 billion deal for a controlling stake in Flipkart, India's largest online retailer.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
WMT Walmart Inc. 83.61 0.61 0.73 9,352,518 Trade

Comments

Emerging Growth

IMV Inc.

Immunovaccine Inc is clinical stage biopharmaceutical company. The Company develops products based on its proprietary vaccine enhancement platform in T cell activating therapies for cancer.